As of 1:31 pm IST, Bitcoin was trading 3.6% higher at $56,813, while Ethereum had risen 1.9% to $2,343. Other notable gains included BNB up 2.5%, Solana increasing 4.25%, Dogecoin surging 6.7%, Toncoin rising 6%, Shiba Inu up 2.5%, and NEAR Protocol gaining 5%.
“Bitcoin has currently stabilized above the $56,500 mark recovering a bit. After reacting negatively to the weak employment data, the crypto traders are focusing on the upcoming FOMC meeting, anticipating a 0.25% to 0.5% rate cut which would be a big boost to BTC for another short term rally. At present, the key support remains at the $55,000 mark and resistance close to $59,000,” said Edul Patel, CEO of Mudrex.
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Vikram Subburaj, CEO of Giottus, noted that Bitcoin has surpassed the $56,500 resistance level and highlighted that positive discussions about crypto could drive Bitcoin towards its 20-day EMA at $57,900.
Investors now turn their attention to Wednesday’s U.S. inflation report, which could provide more clarity on whether the Federal Reserve would deliver an outsized 50-basis-point cut when it meets next week.
Expectations are for headline inflation in the United States to have further slowed to an annual 2.6% in August, as compared to July’s 2.9%.The global crypto market cap increased by 3% to reach $2 trillion, with the total market volume rising 38.6% to $68.04 billion. The volume of stablecoins reached $62.87 billion, making up 92.4% of the total 24-hour crypto market volume, according to CoinMarketCap.In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, rose to $1.122 trillion. Bitcoin’s dominance is currently 56.07%, according to CoinMarketCap. BTC volume in the last 24 hours Rose 51.46% to $33.29 billion.
“Technical indicators, including a bullish RSI divergence, suggest a possible upward trend, potentially pushing BTC towards the $59,000 mark. However, the Bitcoin Risk Index remains high, signaling caution,” said Sathvik Vishwanath, Co-Founder & CEO of Unocoin.
CoinSwitch Markets Desk, said, “With the possibility of a Fed rate cut just a week away, BTC needs to break through the critical psychological barrier of $60,000 to sustain its rally toward a new all-time high.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)